India, where it all began

Presentation by Harini

India has the world’s longest history

when it comes to diamonds. It was in
India that diamonds were first found.

1
India, where it all began

Ancient History

2
India, where it all began

• Golconda Diamonds are Indian diamonds mined in a specific geographic area

in the present-day Andhra Pradesh and Telangana states of India.

• During the rule of the historic Qutb Shahi dynasty (16th century–17th century
CE), also known as the "Golconda Sultanate", The Golconda market was the
primary source of the finest and one of the largest diamonds in the world.

• Located between the two major sea ports of India, Surat and Machilipatnam, a
thriving market developed at Golconda from the Kakatiya reign -- renowned
for the diamonds found in the south-east at Kollur Mine, near Kollur, Guntur
district and at Paritala and Atkur in the Krishna district. At the time, India was
the only country in the world that had diamond mines. Golconda, the fortress-
city within the walls, was thus very famous for diamond trading and other
gems sold there, which came from a number of mines..

4
India, where it all began

• The world's largest diamonds were discovered during this period at 'Kollur' and
other mines in a specific geographic area - now present-day Telangana and
Andhra Pradesh. The diamonds were transported to be cut, polished and after
being evaluated, sold to the richest customers.

• The town developed as a trade centre and under the patronage of the Qutb
Shahi rulers, a thriving market diamonds and other precious stones, developed
near the Golconda Fort. Golconda was soon established as a diamond trading
centre and became the main source of the finest and largest diamonds in the
world. 

•  More than 100,000 workers were involved in diamond trading drawing

travellers from all over the world. Needless to say, the rulers created all
necessary facilities for these important businessmen -- particularly those from
Europe and Central Asia.

4
India, where it all began

Hyderabad remained a diamond trading centre until the end of the 19th century, with
the Golconda market being the primary source of the finest and among the largest
diamonds in the world. The Golconda region can be said to have produced some of the
world's most famous diamonds, including the colourless Koh-i-Noor. Other famous
Indian diamonds include the blue "Hope" diamond (United States), the pink "Daria-i-
Noor" (Iran), the white "Regent" (France), the "Dresden Green" (Germany), the "Orlov"
(Russia), "Nizam" and "Jacob" (India), as well as some diamonds that are now lost - the
"Florentine Yellow", "Akbar Shah" and the "Great Mogul".

Early travellers to India have left their opinions about the rulers and the wealth of
India. Among them was the renowned French traveller Jean-Baptiste Tavernier who
was also a jeweller. He claims to have seen a flat diamond called the "Great Table
diamond", which was kept in a dungeon in Golconda. Two other French travellers Jean
de Thevenot and Francis Bernier were also there as traders of diamonds.

4
India, where it all began

he Golconda Fort is known to have had a vault where the Koh-i-Noor and Hope
diamonds were once stored along with other diamonds. By the 1880s, Golconda's
name was being used generically by English speakers to refer to any source of great
wealth. Gemologists are also known to use this classification to denote a diamond that
has a complete lack of nitrogen in its composition. Also material connected with
Golconda is referred to as "2A". During the Renaissance era, the name "Golconda" had
acquired a legendary aura and became synonymous with vast wealth. The mines
brought riches to the Qutb Shahis of the State of Hyderabad who ruled Golconda up till
1687. After them, the Nizam of Hyderabad ruled Hyderabad till the state's
independence in 1724 from the Mughal empire, after the death of Aurangzeb. In 1948,
the Hyderabad state integrated with India.

4
India, where it all began

The Daria-i-Noor The Hope Diamond The Koh-i-Noor Diamond

Diamond

4
India, where it all began

• Golconda diamonds, mined in the in central Indian region of Golconda, are

among the most sought-after diamonds in the world.

• As trade developed between India and Europe, diamonds made their way to
the royal European courts, and by the 1400s, diamond jewelry and diamonds
spun into clothing had become popular items.

• The high demand for Indian diamonds saw the country’s diamond resources
practically depleted by the late 1700s or early 1800s.

4
India, where it all began

The twentieth century:

The industry
organizes

5
India, where it all began

• In the 1960s, Indian diamond polishers decided to formally

organize the diamond industry in their country.

• They caught the eye of De Beers, and started courting the

industry giant for a steady supply of rough diamonds.

• The first sight was granted to a consortium called the Indian

Diamond Export Corporation.

• At first, they worked on low color and clarity goods intended

for the US market.

August 2015 6
India, where it all began

• The Indian industry mainly cut and polished smaller-sized

diamonds, weighing 0.20 carats and less.

• It was a humble beginning. In 1966, polished

diamond exports from India totaled a mere $17
million.

• However, this modest start, which faced a long road ahead,

constituted the foundation of a new world diamond center.

7
India, where it all began

A new age for diamonds

8
India, where it all began

• In 1985, large deposits of diamonds were found in Western

Australia, and India’s polishers were the best equipped to
polish these diamonds, which were mostly of low color and
clarity.

• Huge quantities of rough diamonds started pouring in,

which required larger workshops. Assisted by growing
finance facilities from local banks, these workshops quickly
developed into large factories.

• This immense transition included shifting away from the

large traditional polishing wheels called “Ghantis,” and
adopting modern tools and machinery in their place.

August 2015 9
India, where it all began

• The burgeoning industry developed new understandings for

how to polish larger stones and higher-value goods.

• Local factories are among the largest and most modern in

the world with highly skilled workforces, employing at peak
nearly one million workers.

• Over time, these developments turned the city of Surat into

the world’s largest diamond manufacturing center.

• Mumbai’s diamond families set up offices in Antwerp and

expanded their global footprint.

August 2015 10
India, where it all began

The global footprint grows

August 2015 11
India, where it all began

• In recent years, many Indian companies have expanded

their activities to the growing diamond center of Dubai.

• A third center, also in Mumbai, developed in the free zone

SEEPZ. This zone houses polishing facilities, but it is
mostly home to jewelry manufacturing.

• The combination of large quantities of rough diamond

imports, constantly improving polishing skills, availability of
financing and a local chain of supply from rough to jewelry
manufacturing, has transformed India into the global
diamond power house that it is today.

August 2015 12
India, where it all began

• By the 1990s and early 2000s, the near-gem type goods

were still being polished mostly in India. In recent decades,
India dethroned Israel as the world’s largest diamond
exporter.

• In the early 1990s, the Indian economy took a turn towards

more free market policies, giving rise to a new middle
class that started buying diamond jewelry alongside the
traditional gold jewelry.

August 2015 13
India, where it all began

• De Beers decided to include the Indian consumer market in

its generic marketing campaigns, launching jewelry
lines, and thus the Indian diamond industry found an
important additional source of income – its own
local community.

August 2015 14
India, where it all began

Gross trade 2014-2015

Polished diamond exports: $23.2 billion.

Polished imports: $6.94 billion.
Rough imports: $16.8 billion.
Rough exports: $1.42 billion.

August 2015 17